The Kalangadoo timber treatment plant, in the south-east of South Australia, has been sold to local logging business, Plantation Treated Timber.

Wepar Investments, which owned the plant, went into liquidation in December last year, just seven weeks after buying it from Gunns.

Anna Agostino, a manager at liquidators Clifton-Hall, says the former workers will now receive their entitlements.

"So with the sale, what will happen now is we'll declare a dividend and we'll pay a large amount of what the government paid out to the employee entitlements, but it also means we'll get to pay the superannuation and the sick leave which the employees would have otherwise missed out on."